FMBcapital Holdings Plc (Malawi) – Review of audited FY2021 financials
FMBcapital Holdings Plc (FMBCH.mw) 2021 Abridged Report
Our Mozambique business was impacted by non-recurring costs but has still managed to record a profit that is sustainable into the future. We are confident that the leadership changes will improve the competitiveness and resilience of the operations.
The Zambia operations continued to deliver pleasing results and registered profitable growth through investment in interest generating assets. Zambia paid a maiden interim dividend in 2021 and has announced a final dividend for 2021 payable in April 2022.
Our operations in Zimbabwe posted an inflation adjusted profit for 2021 and the country continues to face the challenge of hyperinflation. The net monetary loss arises from the purchasing power the company lost on holding excess monetary assets. Zimbabwe paid a first interim dividend in 2021 and has announced a second interim dividend for 2021 payable in April 2022.
Our centralised IT and operations in Mauritius continue to operate efficiently maintaining our cost base and improving our operational control environment.
Amid the varying disruptions to operations, the Group’s businesses have successfully sustained banking operations ensuring that customers can access banking services safely whilst also protecting our staff and partners. We have made considerable progress in developing an enhanced internet banking platform to be launched across our operations in 2022.
The capital adequacy and liquidity ratios of all Group banks comfortably meet the prescribed prudential minimum ratios in their respective territories giving us capacity to selectively grow our balance sheet. We will, however, continue to exercise prudence in our balance sheet management across the territories where we operate.
Outlook
We are hopeful that the growth in our balance sheet during 2021 and the momentum all our banks are experiencing, will allow us to deliver a good performance in 2022. We have strong and stable leadership teams in place across all businesses and we are confident of our ability to continue to transform the Bank with a strong emphasis on digitisation, a journey we started over a year ago.
Final Dividend
The Directors have recommended a final dividend in respect of the year ended 31 December 2021 of US$ 2,458,250 (0.1 cents per ordinary share) subject to shareholders’ approval at the forthcoming Annual General Meeting. The financial statements for year ended 31 December 2021 do not reflect this proposed dividend. Such dividend, if approved by the Shareholders of FMBcapital Holdings PLC will be accounted for in equity as an appropriation of accumulated profits in the year ending 31 December 2022.
By order of the board
Mr. Terence Davidson – Chairman
Mr. Mahendra Gursahani – Director
19 May 2022